CANDLESTICK CHARTING EXPLAINED WORKBOOK
CANDLESTICK CHARTING EXPLAINED WORKBOOK
Step-by-Step Exercises and Tests to Help You Master Candlestick Charting
GREGORY L. MORRIS
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ISBN: 978-0-07-174646-5
MHID: 0-07-174646-3
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To
Laura
CONTENTS
PREFACE
After writing the third edition to Candlestick Charting Explained in 2006, I thought my candlestick writing days were over. Not so fast! After giving hundreds of lectures and presentations on the subject, I found that even though the book was quite thorough, many people still needed the academic approach to assist in their learning process. Moreover, I continue to witness a terrible misunderstanding about what candlesticks can offer a trader. I think this is so because some authors tend to overpromote their books and software, offering quick solutions to wealth. I dont even want to go there with an opinion on what I think of that approach. There is no magic in candlesticks, there is no ancient wisdom to glean, and there is nothing in candlesticks that you could not get from bar charts. Candlesticks just make it easier and certainly more visually appealing. Hence I created this book, which was designed not only to stand alone but also to be a companion to Candlestick Charting Explained. It serves as a study guide and boot-camp approach to learning. Its focus is on the salient and important points I made in the original book with an emphasis on a classroom environment complete with testing.
ACKNOWLEDGMENTS
I offer my sincere thanks and appreciation to Norman North for our 30 years of friendship and working together in the 1980s developing technical analysis software and, in particular, the CandlePower software that was the first commercially available software to identify Japanese candle patterns automatically. Wayne Corbitt needs special mention for all his effort in producing this book, along with numerous helpful suggestions and comments, he contributed greatly to
ENLISTMENT: GETTING READY FOR DUTY
By purchasing this workbook, you have voluntarily enlisted to participate in doing battle with the markets. The markets are living, morphing entities that feed off of human emotion and trader losses. It is my intention to provide you with the weapons necessary to trade what you see, to help you harness the power of candlestick analysis, and to avoid unnecessary losses. We will start with the basics of candlestick lines and patterns and then add weapons to our arsenal as we progress. First, however, let me step you through my journey that has brought us together at this point in time.
WHY BOOT CAMP?
In 1971, after graduating from the University of Texas with a bachelor of science degree in aerospace engineering, I was faced with a country in recession, and the marketplace for new engineers was scarce, so I joined the United States Navy to become a fighter pilot. Of course, that meant that I had to become an officer, and that, in turn, meant that I had to attend Officers Candidate School in Pensacola, Florida. No problem, right?
In October, 1971, I drove from Dallas, Texas, in my 1962 nonair-conditioned, faded-blue, four-door, standard transmission, six-cylinder Chevrolet Bel Air. This fine automobile had been with me since I was a junior in high school and had close to 175,000 miles. In the trunk, I had a box of my aerospace engineering books because I knew the Navy would be impressed and probably want me to teach others about aerodynamics, heat transfer, and boundary-layer theory. I started to include my golf clubs but later decided that I wouldnt have that much spare time between learning to be an officer, teaching aerodynamics, and engaging in all the social aspects of being a Navy pilot. Additionally, I had been a private pilot since 1967 and assumed that I knew all there was to know about flying airplanes. Wow, was I in for a shock!
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